Home Loan Eligibility Calculator and eligibility criteria Overview
Loan eligibility calculator:-
The Loan Eligibility Calculator is one such calculator in which we can know our loan eligibility in a matter of seconds. You can self-assess your loan eligibility through the criteria on other given sites online methods, and check whether your age, work experience, and monthly remuneration fall within the specified limit. In this calculator, you have to feed some of your loan information and then you only have to click on calculate, the site will show you the eligible amounts & monthly EMIs. Link for eligibility calculator.
Home loan eligibility criteria:-
Home loan eligibility mainly depends on the income and repayment capacity of the individual.
Every bank and financial institution runs on its terms and conditions. The eligibility or eligibility of a home loan for any individual depends on whether you can fulfill the terms and conditions laid down by the lending institution or not. By knowing your home loan eligibility, you get to know whether you will be able to get the loan amount as per the terms and conditions prescribed by the lending institution.
Eligibility criteria for Home Loan:-
- The loan eligibility criteria vary depending on the bank/lender. Loan sanctions are based on the borrower's monthly income, credit profile, and present relationship with the bank.
- See Below Table Data:-
|Minimum and Maximum Age||18 - 70 years|
|Credit Score||Above 750|
|Employment Status||Salaried or Non-Salaried|
|Work Experience||2 Years|
|Loan Amount||Decided by the lender|
|Residence Type||Permanent resident or Non-resident Indian (NRI)|
|LTV Ratio||75 to 85%|
|Property Type||Completed /Under Construction Project, Land/Plot, build on own Land, Buy Land and Build Home|
Factors that Affect Loan Eligibility
Here are some of the factors that the home loan lender understands while calculating the home loan amount as per your loan eligibility.
- Banks or NBFCs ensure that your Monthly Installments (EMIs) are fixed as per your eligibility, it should be limited to 50% of your monthly income. So that you will not get into trouble while managing your loan EMIs with your monthly expenses.
- If you have already taken a loan and still pay its EMI, then keeping this loan in mind the monthly EMI of your new loan will be decided. The ongoing EMI of any other loan can reduce your loan ability and eligibility.
- If you want to take property-based value, then keep in mind that most banks and NBFC institutions distribute only up to 80% of the value of the property.
What are the main factors that affect loan eligibility?
The first and foremost factor that a lender/financier considers when you apply for a loan is your age. Generally, financial institutions try to limit the loan tenure to the retirement age of the primary applicant. This means that young professionals (early 20s and 30s) can avail of loans with tenures of up to 25 years without any hassle. But it can be a bit tough for older applicants especially for applicants over 40 to be eligible for the extended tenure.
In any category the applicant belongs to, they must have a stable and regular source of income. Let us categorize it into salaried, professional, and self-employed. If the borrower is a good money earner then there is less risk in borrowing money from any bank.
- The people who work in the firm whether they are privately registered or government, then these rules also apply to them:-
- Should have experience of last 1 year or more in the current organization.
- The lender may ask for documents like pay slips, bank statements, and Form 16
- Must be a co-applicant or guarantor too.
- This category includes doctors, dentists, architects, engineers, management consultants, and chartered accountants who come under independent workers/professionals. These people are required to submit bank statements and ITR papers to take the loan.
- Self-employed- If you have your own company or your own business, or you have any other source of income like rented property or shareholder then you come under this category. If you have solid proof of your income like a bank statement or tax-related documents then you can easily apply for a loan.
Your CIBIL score plays a major role in getting your loan document approved. The Bank checks your past credit payments from Credit Information Bureau India Limited. This company keeps all of your past credit records, and your relationship with lenders. If your old record is not correct then it can greatly reduce your eligibility.
If you choose a longer tenure for your loan, your eligibility will improve and it can extend even further. Your EMI will also be low and manageable. But the downside is that you'll end up with your loan paying more interest.
If you have taken a loan in the past, then always pay it on time and try to repay your loan as soon as possible. Apply for another loan only after you have settled your previous loan. If your old loan goes unsettled, it can take a toll on your eligibility, and your loan approval may get rejected.
Eligibility Calculator - How do I improve my eligible home loan amount?
Here we are going to tell you some innovative ways, with the help of them you can improve your eligible home loan amount.
While applying for a home loan, you can make your spouse or any family member your co-applicant and can take a joint home loan together. In this response, the income of your spouse or your co-applicant will be considered and it increases your loan eligibility and amount.
You can choose a longer tenure of your home loan to increase the eligibility of your loan amount. This will also reduce your monthly installments and make it easier to repay the loan.
As we have already told you, you can add your life partner, your parents, or any household member as a co-applicant for your loan. Provided their income should be fixed and their CIBIL score should also be good.
FAQ related to Loan eligibility
How to calculate your home loan eligibility?
You are eligible for a home loan up to 60 times your net salary or monthly income. For example, if your net salary is Rs. 55,000, you will be eligible for a loan of around Rs 33 lakhs.
How to improve your home loan eligibility?
There are several simple ways that any potential individual can improve their home loan eligibility
- The borrower can add a co-applicant from his family.
- Take advantage of a relatively structured repayment plan.
- Provide details for your other source of income.
- A good credit score has always been considered paramount if you want to improve your eligibility then do not keep any of your past dues and pay them all on time.
What are the costs involved in taking a Home loan?
The cost meaning is the processing fee on your loan. These are one-time payments and are a part of the loan application process. The home loan processing fee is not fixed. These variations depend on many cases, such as loan type amount and credit score, and the previous loan repayment behavior of the borrower.
What are factors that determine your home loan eligibility & help you to increase your loan amount?
- Age category
- CIBIL Score
- Minimum earning
- LTV and property value
Can I change the home loan tenure?
Procedure to change the tenure of home loan. Any period during the loan can be voluntarily changed. You can visit the branch of the lender and request the same. The concerned authority will check your loan details and latest income statements before allowing you to change your tenure.
How much can a loan estimate change?
Some lenders may increase closing costs by any amount, some lenders may increase it by as much as 10 percent, and some lenders may not increase it at all.
Can I reduce my home loan amount?
There is no limit on the amount of down payment the higher the down payment you can make, the lower will be your loan liability and the lower will be your EMIA